Concerns Over Monetary Policy And Other Links

I have a lot of links today, so I will do two sets.

Topic of the Day: Monetary Policy

Here is the first set with an emphasis on monetary policy and debt. The ECRI Index came out at a –8.3% annualized. That’s getting very close to where you have to call double dip. Am I worried? Yes. What can policy makers do?

I think what is clear is that fiscal stimulus is out. Remember, running up more deficits is not in the Republicans’ interest as we head into the mid-term elections in the U.S. The deficit hawks are going to win this one. So, now the Fed is going to get a lot of pressure to fire up the helicopters. I don’t really think QE is going to work but the Fed is going to feel the pressure to do something, anything.

Also see my related posts from yesterday and today. The first has links to more articles on this.

The Usual Fare

Also, take a look at a new blog from the IMF that I have discovered: iMFdirect – The IMF Blog.

Finally, the donation to Credit Writedowns by some wonderful people is much appreciated. I want to thank Gwen, Stephen, Loy, Liz and Steve for your gifts.

All the best.


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